Krabi land seizure hits 2.1 billion baht as Phuket files 39 foreign property cases in southern nominee crackdown

Thai authorities have sharply escalated their enforcement against illegal foreign ownership structures in the southern provinces this week. According to The Phuket News, officials seized 2.1 billion baht worth of land in Krabi during a major raid targeting nominee arrangements.

The enforcement wave is moving simultaneously across multiple tourist hotspots. In neighboring Phuket, authorities have forwarded 39 foreign land ownership cases to police investigators and are actively probing another 317 suspected violations, according to The Phuket Express. The crackdown extends beyond real estate; on July 26, the Bangkok Post reported that Phuket officials took legal action against eight jet ski operators for running unlicensed businesses and utilizing illegal foreign nominee structures.

The campaign is receiving high-level backing from Bangkok. On July 24, Deputy Interior Minister Polapee Suwunchwee personally led surprise inspections of suspected unlicensed, foreign-controlled hotels in Krabi's Ao Nang area.

What this means for you

If you operate a business or hold property in Thailand through a Thai limited company, the era of lax enforcement regarding shareholder structures is ending. A "nominee" is a Thai citizen who holds shares on behalf of a foreigner without having a genuine financial stake or voting power in the company.

To protect your investments, you should take the following steps:

• Review your company structure: Ensure all Thai shareholders have a legitimate, documented financial investment in the business.
• Audit your licenses: The recent raids targeted businesses lacking proper hotel or operating licenses alongside their ownership structures. Ensure your paperwork is fully compliant.
• Avoid "turnkey" nominee services: If a legal or accounting firm offers to provide Thai shareholders for a fee to help you reach the 51 percent Thai ownership threshold, decline the service. This is exactly the structure authorities are currently dismantling.

While these raids are currently concentrated in the southern islands and previously hit Koh Phangan, the direct involvement of national ministries suggests this level of scrutiny will likely become the new standard nationwide.